Canada's Immigration Levels Plan 2025-2027: Key Changes on the Horizon

Between now and November 1, Immigration, Refugees, and Citizenship Canada (IRCC) will introduce the 2025-2027 Immigration Levels Plan. Historically, this plan outlines the number of permanent residents Canada aims to admit over the coming year, with projections for the two years following. The plan significantly influences population growth, which impacts taxation, healthcare, housing, and the labor market.

A New Inclusion: Temporary Residents

In a departure from previous years, Immigration Minister Marc Miller announced that temporary residents, such as those on work and study permits or visitor visas, will be included in the upcoming plan. In 2023, over 2.5 million temporary residents lived in Canada, making up 6.2% of the population. The new plan aims to reduce this percentage to 5% over the next three years.

Study Permit Caps and Adjustments

This year has seen significant changes, especially regarding study permits. In January, IRCC capped the number of study permits at 606,000, with an expected approval of 360,000, a 35% reduction from previous years. The cap is set to tighten further in 2025, reducing processed permits to 437,000. Notably, master’s and PhD students, once exempt, will now be included in these limits.

Open Work Permits Face Reductions

IRCC has also set its sights on limiting Post-Graduation Work Permits (PGWPs) and Spousal Open Work Permits (SOWPs). Changes in eligibility criteria, such as language proficiency requirements, are expected to reduce PGWP permits by 175,000 over the next three years. Additionally, restrictions on SOWPs for spouses of master’s students and non-critical programs will lead to further reductions, aiming to issue 325,000 fewer open work permits in total.

Closed Work Permits and Employer Limits

Changes to the Temporary Foreign Worker Program (TFWP) further reduce temporary residents. Employers can no longer hire more than 10% of their workforce through the TFWP, and low-wage workers can only be employed for a year. These changes, coupled with higher restrictions on labor market assessments, are designed to curb over-reliance on foreign labor.

Permanent Residents: What’s Next?

The previous Immigration Levels Plan targeted 500,000 new permanent residents annually by 2025, focusing largely on economic immigrants. Minister Miller has signaled that changes may be coming, emphasizing a potential shift in the type of immigration Canada supports. With housing and healthcare concerns rising, these adjustments could have significant implications for future immigration policies.

Canada’s Immigration Levels Plan not only shapes the nation’s population but also its economy, social services, and infrastructure. The upcoming plan is expected to balance growth while addressing concerns raised by Canadians.